Truck Tonnage Shows Signs of Recovery in August, Despite the Tonnage Dip
Our articles may contain affiliate linksIn August, truck tonnage experienced a 2.3% decline compared to the same period last year, but it showed slight sequential improvement for the second consecutive month. This suggests that the trucking industry's freight recession may be gradually improving, according to the American Trucking Associations (ATA).
ATA Chief Economist Bob Costello noted that there is mounting evidence that tonnage reached its lowest point in April and has been slowly trending upward. However, he also pointed out the challenges of year-over-year comparisons, as tonnage reached its peak in September of the previous year.
The seasonally adjusted index for August registered at 115.3, down from 119 in August 2022. On a month-to-month basis, there was a 0.2% increase compared to July. This follows a positive trend of a 1.1% sequential uptick from June to July, which Costello views as a positive sign for the industry. Nevertheless, he cautioned that a broader recovery will take time.
Costello stated, "It is unlikely that tonnage will turn positive compared to the previous year for at least a month or two longer." He added that recent freight trends remain mixed, with consumer spending and factory output showing flat to declining patterns.
The ATA index primarily reflects contract freight rather than spot market freight, and it is calculated based on surveys from ATA's membership. The report provides both month-to-month and year-over-year data, along with relevant economic comparisons and key financial indicators.
Trucking plays a significant role in domestic freight transportation, representing 72.6% of the total tonnage, which includes manufactured and retail goods, according to ATA. In 2022, trucks transported 11.46 billion tons of freight, with motor carriers accounting for $940.8 billion, equivalent to 80.7% of the total revenue earned by all transportation modes.
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Highlights of the article
- Truck tonnage in August declined 2.3% compared to the previous year but showed sequential improvement for the second consecutive month.
- American Trucking Associations (ATA) suggests this may indicate that the worst of the trucking industry's freight recession is behind it.
- ATA's Chief Economist, Bob Costello, notes that evidence is growing that tonnage hit its lowest point in April and is gradually trending upward.
- Year-over-year comparisons are challenging due to tonnage peaking in September of the previous year.
- The seasonally adjusted tonnage index for August was 115.3, down from 119 in August 2022, but it increased by 0.2% compared to July.
- Costello sees the two-month trend of sequential improvement as a positive sign, but he cautions that a broader recovery will take time.
- It's unlikely that tonnage will turn positive compared to the previous year for at least a month or two longer.
- Recent freight trends remain mixed, with consumer spending and factory output showing flat to declining patterns.
- The ATA index primarily reflects contract freight and is based on surveys from ATA's membership.
- Trucking represents a significant portion of domestic freight transportation, with trucks hauling 11.46 billion tons of freight in 2022 and motor carriers earning 80.7% of total revenue in the transportation industry.
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